diff -r 5b630f2ccb4e -r 458f7294dfee mercurial/filemerge.py
--- a/mercurial/filemerge.py	Sat Feb 25 19:32:39 2017 +0900
+++ b/mercurial/filemerge.py	Sat Feb 25 19:36:02 2017 +0900
@@ -543,6 +543,7 @@
 
     ui = repo.ui
     template = ui.config('ui', 'mergemarkertemplate', _defaultconflictmarker)
+    template = templater.unquotestring(template)
     tmpl = formatter.maketemplater(ui, 'conflictmarker', template)
 
     pad = max(len(l) for l in labels)